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That depends on the goals of the purchaser. Bonds return a fixed rate of interest income. Stocks generally return a fluctuating rate of interest income, and thus have the capacity to return more money, both as dividends and increased (resale) value of the stock itself.
However, stocks also have the potential to decrease in value, which is not true of the bond market.
Finally, if the company folds or goes bankrupt, bond-holders will be the first people to be repaid the value of their bonds (since bonds are debts owed to the bond-holder), while stockholders will not be repaid (since stocks are shares of ownership, not debts).
If you want to risk your money for the sake of earning more, buy stocks. If you don't want to risk as much and are willing to settle for a lower rate of return, buy bonds -- even then, beware, because a company that goes bankrupt may not have enough money left over to pay even the bond-holders.
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What is the differences between a stock and a bond?
A stock represents partial ownership in a company. A bond represents a loan to a company.
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
What is the difference between a bond and a stock?
When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company.
What is the different between a stock and a bond?
A stock represents a small 'ownership' unit, where a bond is a 'debt'. If the company makes profits or losses, stock holders take this first. If the company goes bankrupt, shareholders are wiped out and then debtholders wear the next pain.
What is a Preferred financial bond?
a bond that uses stock symbol and sells like stock
Is it better to be a stock holder or a bond holder?
The way the capitol structure is set up, Bond Holders have a better chance of getting paid then do COMMON Stock and or Preferred stock holders, But there are different level of bonds within that layer of the capitol structure. higher rate of return or possible rate of return, then the risk is there somewhere, I mean ask any of the common stock holders of C or GE
What is the differences between a stock and a bond?
A stock represents partial ownership in a company. A bond represents a loan to a company.
What is a piece of ownership in a company called?
stock or share
What the inter- relation between stock market bond market property market?
Bond prices have an inverse relationship with interest rates. As bond prices rise, yields will fall. Typically this is bullish for stocks as investors move to the equity markets to look for better returns. In this situation the stocks and bond markets generally trend in line with one another. In a deflationary situation, this situation is reversed and stocks and bond prices move inversely. Bond futures can be used as a leading indicator for the stock market
How is a Stock different from a Bond?
A Bond is like a fixed deposit. It is like a loan agreement between the bond issuer and the buyer. The person who owns a bond only has a debt obligation from the bond issuer. On the other hand Stock means ownership. Every stock owner of a company practically owns a portion of that company.
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
What is the difference between a bond and a stock?
When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company.
Will an increase in inflation have a larger impact on the price of a bond or preferred stock?
The preferred stock
What is a convertible bond?
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
Does a stock or bond represent more risk to the company?
A share is more of a risk than a bond.
